Madsen v. Smith

EVAN A. EVANS, Circuit Judge.

Bankrupt was incorporated under the laws of Wisconsin, November 12, 1912. Its capital stock was increased October 28, 1914, to $300,000, and again increased January 2, 1917, to $500,000. On May 6, 1919, there was still another issue of $200,000 of second preferred stock, a part of which was sold prior to August 1, 1919, and some subsequent thereto. The adjudication in bankruptcy occurred February 9, 1922. Appellants, employees of the bankrupt, purchased stock at various times between May 28, 1919, and January 9, 1920. They seek to have the amounts paid for this…